By Idahosa Dominion Ejalen
The Nigerian state has earned over $13 Billion as dividends of its investment in the Nigeria Liquefied Natural Gas Limited, the country’s sole LNG exporter.
The country owns 49% of the company, through the Nigeria National Petroleum Corporation (NNPC). Three European majors: Shell, TOTAL and ENI hold a combined 51% stake.
The 22Million Metric Ton Per Annum (22MMTPA) capacity plant shipped its first cargo in October 1999.
NLNG celebrated its 1000th cargo in December 2006; 2000th cargo in October 2010 and 3000th cargo in January 2014 earning over $80 Billion in revenue through the years, the company claimed at a Facts And Figures session last weekend. It said it pays corporate income tax of over $1.23Billion (or N200 Billion in local currency) annually which is paid to the federal government, over $37Million (N6 Billion) being paid to the Rivers State Government and over $540, 000 (N88 Million) annually to the Bonny Local Government as tenement rate.
“Over four trillion cubic feet of gas which would have been flared have been monetized”, explained Babs Omotowa, CEO NLNG Limited. He said that the project had “drastically reduced gas flaring by upstream companies from 60% to less than 11%” and has also enabled the country “to own a $14 Billion worth of assets on Bonny Island”
The NLNG just did not say anything at all. before is Nigeria not expected to earn money from its huge investments in the plants? so that’s wasn’t the issue at all. What have they been doing with the Condensates; LPG; and other NGLs from the plant? If they have been giving the resources to NNPC or direct to marketers,, we should know at what rate and the cummulative earnings from these other resources which are outside the LNG output.